This study endeavored to determine the degree of influence of rural communities in the emergence and growth of Small and Medium Enterprises (SMEs) in Samar Island, Philippines. The study is a descriptive survey that utilized structured survey questionnaires and personal interviews with the respondents. The result of the study indicated that the community variables influenced the emergence and growth of SMEs in the rural communities. While the economic factors strongly influenced, the socio-cultural, demographic, bio-physical and politico-legal factors influenced the emergence and growth of SMEs in the rural communities. The common problems that hinder the rural communities from influencing the SMEs toward their emergence and growth were focused on the negative attitudes and values of the people in the community which are attributed to people’s lack of unity and cooperation, laziness, crab mentality, lack of self-discipline, over dependence on others, vices, lack of concern for the development of the community.